Arcos Dorados Holdings Inc (NYSE: ARCO)’s stock price has gone decline by -0.20% in comparison to its previous close of $7.68, however, the company has experienced a -2.85% decrease in its stock price over the last five trading days. 247wallst.com reported 2025-06-12 that Investing in stocks priced under $10 can offer significant upside potential for investors seeking high returns on a modest budget.
Is It Worth Investing in Arcos Dorados Holdings Inc (NYSE: ARCO) Right Now?
The price-to-earnings ratio for Arcos Dorados Holdings Inc (NYSE: ARCO) is 12.03x, which is above its average ratio. Moreover, the 36-month beta value for ARCO is 0.61. Analysts have varying opinions on the stock, with 3 analysts rating it as a “buy,” 5 as “overweight,” 1 as “hold,” and 0 as “sell.”
The public float for ARCO is 121.07M and currently, short sellers hold a 2.12% of that float. On July 08, 2025, ARCO’s average trading volume was 1.64M shares.
ARCO’s Market Performance
ARCO stock saw an increase of -2.85% in the past week, with a monthly gain of 1.93% and a quarterly increase of 5.87%. The volatility ratio for the week is 2.79%, and the volatility levels for the last 30 days are 2.25% for Arcos Dorados Holdings Inc (ARCO). The simple moving average for the last 20 days is 0.01% for ARCO’s stock, with a simple moving average of -4.53% for the last 200 days.
Analysts’ Opinion of ARCO
Many brokerage firms have already submitted their reports for ARCO stocks, with JP Morgan repeating the rating for ARCO by listing it as a “Neutral.” The predicted price for ARCO in the upcoming period, according to JP Morgan is $8.80 based on the research report published on July 02, 2025 of the current year 2025.
Jefferies, on the other hand, stated in their research note that they expect to see ARCO reach a price target of $15. The rating they have provided for ARCO stocks is “Buy” according to the report published on December 01st, 2023.
Barclays gave a rating of “Overweight” to ARCO, setting the target price at $9 in the report published on September 27th of the previous year.
ARCO Trading at 0.33% from the 50-Day Moving Average
After a stumble in the market that brought ARCO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -27.35% of loss for the given period.
Stock Fundamentals for ARCO
Current profitability levels for the company are sitting at:
- 0.07 for the present operating margin
- 0.13 for the gross margin
The net margin for Arcos Dorados Holdings Inc stands at 0.03. The total capital return value is set at 0.12. Equity return is now at value 26.84, with 4.17 for asset returns.
Based on Arcos Dorados Holdings Inc (ARCO), the company’s capital structure generated 0.81 points at debt to capital in total, while cash flow to debt ratio is standing at 0.11. The debt to equity ratio resting at 4.27. The interest coverage ratio of the stock is 6.38.
Currently, EBITDA for the company is 502.88 million with net debt to EBITDA at 3.81. When we switch over and look at the enterprise to sales, we see a ratio of 0.76. The receivables turnover for the company is 23.43for trailing twelve months and the total asset turnover is 1.29. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.86.
Conclusion
To wrap up, the performance of Arcos Dorados Holdings Inc (ARCO) has been mixed in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
